Ordinance No. 7,873970109 -4
ORDINANCE NO. 7873
® AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS,
AUTHORIZING AND DIRECTING THE MAYOR TO EXECUTE AND THE CITY
CLERK TO ATTEST TO A TAX ABATEMENT AGREEMENT WITH ENICHEM
ELASTOMERS AMERICAS, INC.; AND PROVIDING FOR THE EFFECTIVE DATE
THEREOF.
WHEREAS, the City Council of the City of Baytown has established through Resolution No. 1262
guidelines and criteria governing tax abatement agreements by the City of Baytown in a reinvestment zone;
and
WHEREAS, the City Council of the City of Baytown through Resolution No. 1262 has elected to
participate in tax abatements, and
WHEREAS, Resolution No 1262 provides for the availability of tax abatements for both new facilities
and structures and for the expansion or modernization of exiting facilities and structures, and
WHEREAS, the City Council of the City of Baytown finds that the terms of the agreement and the
property subject to the tax abatement agreement with EniChem Elastomers Americas, Inc., meet the applicable
guidelines and criteria adopted by the City of Baytown; and
WHEREAS, the City Council of the City of Baytown finds that entering into the proposed agreement
will not result in a substantial adverse affect on the provision of the City's services or tax base and that the
planned use of the property will not constitute a hazard to public safety, health or morals; NOW
THEREFORE
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS:
Section 1: That the City Council of the City of Baytown, Texas, hereby authorizes and directs the
Mayor and City Clerk of the City of Baytown to execute and attest to a Tax Abatement Agreement with
EniChem Elastomers Americas, Inc. A copy of said agreement is attached hereto, marked Exhibit "A," and
made a part hereof for all intents and purposes.
Section 2: This ordinance shall take effect immediately from and after its passage by the City
Council of the City of Baytown.
INTRODUCED, READ and PASSED by the affirmative vote of the City Council of the City of
Baytown this the 9th day of January, 1997. /�
%tG
PETE C. ALFARO, Mayor
ATTEST:
EILEEN P. HALL, City Clerk
APPROVED AS TO FORM:
® ACIO RAMIREZ, SR., Attorney
c:klh261counci 1l ordinance \TaxAhatementAgreemenLEniChem
® CITY OF BAYTOWN
TAX ABATEMENT AGREEMENT FOR REAL PROPERTY
LOCATED IN THE- ENICHEM REINVESTMENT ZONE
THE STATE OF TEXAS §
COUNTY OF HARRIS §
This Tax Abatement Agreement (hereinafter referred to as the
"Agreement"') is made and entered into, as of ,
1997 by and between the City of Baytown ( "City ") and EniChem
Elastomers Americas, Inc., a Delaware Corporation ( "Owner "), the
owner of taxable real property in Harris County, Texas, located in
the EniChem Reinvestment Zone ( "Reinvestment Zone ").
I. AUTHORIZATION
This Agreement is authorized by the Texas Property
Redevelopment and Tax Abatement Act, TEX. TAX CODE, Chapter 312,
and by Ordinance of the City Council of the City of Baytown. The
Reinvestment Zone has been created by order of the City Council of
the City of Baytown.
II. DEFINITIONS
As used in this Agreement, the following terms shall have
the meanings set forth below:
a. Certified Appraised Value means the January 1, 1997,
appraised value of the property within the Reinvestment
Zone as, certified by the Harris County Appraisal District
as of that date.
b. Improvements means the buildings or portions thereof and
other improvements, including fixed machinery, equipment
and process units, used for commercial or industrial
purposes that are erected by the Owner on the property
after January 1, 1997.
C. Construction phase means a material and substantial
improvement of the property which represents a separate
and distinct construction operation undertaken for the
purpose of erecting the Improvements. The period of
Construction Phase ends when commercial production of "on
specification" product is achieved at the facility.
0
30142506.3 010297 1054C 93176178
UN18(T A
d. Abatement means the full or partial exemption from ad
valorem taxes of certain property in a reinvestment zone
designated for economic development purposes.
e. Eligible property means the buildings, structures, fixed
machinery, equipment and process units, site
improvements, and that office space and related fixed
improvements necessary to the operation and
administration of the facility. New Eligible Property
means Eligible Property construction of which commences
subsequent to the date of execution of this Agreement.
A list of the New Eligible Property is set forth in
Owners Application for Tax Abatement in the City of
Baytown, which is attached hereto as Exhibit "A" and made
a part hereof. During the Construction Phase of the New
Eligible Property, the Owner may make such change orders
to the New Eligible Property as are reasonably necessary
to accomplish its intended use.
f. Ineligible Property means land, inventories, supplies,
tools, furnishings and other forms of movable personal
property, vehicles, vessels, aircraft, housing, hotel
accommodations, deferred maintenance investments,
improvements for the generation or transmission of
electrical energy not wholly consumed by a new facility
or expansion, any improvements including those to
produce, store or distribute natural gas, fluids or
gases, which are not integral to the operation of the
facility, and property that has an economic life of less
than fifteen (15) years.
The Guidelines and Criteria for Granting Tax Abatement in a
Reinvestment Zone created in Baytown or its extraterritorial
jurisdiction, adopted by the Baytown City Council on September 28,
1995, are attached hereto as Exhibit "B" and made a part hereof.
All definitions set forth therein are applicable to this Agreement.
III. SUBJECT PROPERTY
The EniChem Reinvestment Zone (the "Reinvestment Zone ") is an
area within Harris County, Texas, generally described as a 24.921
acre tract of land in the Harvey Whiting, Abstract 840, and more
fully described in Exhibit "C" attached hereto and made a part
hereof. The property covered by this Agreement (referred to herein
as the "subject property ") is an area generally described as the
same 24.921 acre tract of land within the Reinvestment Zone.
• 30142506.3 010297 1054C 95176178 2
0
The subject property consists of the following tax parcel
account numbers:
Harris County Appraisal District Account Numbers:
045 -144- 001 -018 -6
045 - 144 - 001 -018 -8
24.921 acre tract
24.921 acre tract
The estimated Certified Appraised Value of the 24.921 acre
tract based on January 1, 1996 values is as follows:
045-144- 001 -0186
045 - 144 - 001 -0188
$ 1,116,280
$47,416,500
The Certified Appraised Value will be those values as
determined by the Harris County Appraisal District effective as of
January 1, 1997.
IV. VALUE AND TERM OF AGREEMENT
a. Abatement on the Improvements shall be permitted only for
the additional value of eligible property as defined in Section 2
of the Guidelines and Criteria and as specifically listed in
Exhibit A. This abatement shall be granted effective April 1
immediately following the date of execution of this Agreement (the
"Effective Date of Abatement "). The portion of eligible property
value to be abated shall be in accordance with the following
schedule:
Year One (1000) (construction phase)
Year Two (100e) (construction phase)
Year Three (100W) (first year after construction phase)
Year Four (750) (second year after construction phase)
Year Five (50%) (third year after construction phase)
(the "Abatement Period "). The construction phase shall continue
only until the earlier of two years or when the construction of the
new line for cooling, drying, and packaging of block copolymers is
completed and commercial production of on specification product is
achieved at the facility. If the period of construction extends
beyond two (2) years from the Effective Date of Abatement, the
facility shall be considered completed for purposes of abatement,
and in no case shall the Abatement Period, inclusive of
construction and completion, exceed five (5) years from the
Effective Date of Abatement. The abated value shall be the value
of the eligible property as defined in Section 2 of the Guidelines
and Criteria less the value of any existing property as defined in
Section 2 of the Guidelines and Criteria.
• 30142506.3 010297 1054C 95176178 3
® b. From the Effective Date of Abatement to the end of the
Abatement Period, taxes shall be payable on the Improvements as
follows:
(1). The value of 'ineligible property as provided in
Section 2 of the Guidelines and Criteria shall be fully
taxable;
(2). The base year value'as defined in Section I of the
Guidelines and Criteria of existing eligible property as
determined each year (the estimated base year value of the
portion of the property within the Zone subject to this
Agreement will be forwarded to the City as soon as new tax
parcel account numbers are assigned to the subject property by
the Harris County Appraisal District) shall be fully taxable;
and
(3) . The additional value of new eligible property shall
be taxable in the manner described in Section 2(g) of the
Guidelines and Criteria and in accordance with Section IVa of
this Agreement. The estimated value of the Improvements to be
abated pursuant to this Agreement is $4,870,000.
(4) . The City shall enter into only one tax abatement
agreement for the Improvements described in this Agreement
during the existence of the Zone as designated by Ordinance
No.
V. CONTEMPLATED IMPROVEMENTS
As set forth in the Application attached as Exhibit "A," the
owner represents that it will expand and modernize its current
manufacturing facility at a cost of approximately $4,870,000 ( "New
Facility ") that will be used for commercial or industrial purposes.
During the Construction Phase, the Owner may make such change
orders to the project as are reasonably necessary.
It is contemplated that this modernization project will result
in the retention of the Owner's manufacturing activities at its
current location, thereby preserving jobs for all of its current 98
employees. The project is not expected to solely or primarily have
the effect of transferring employment from one part of Baytown to
another. It is further contemplated that this project will provide
an average of 40 construction jobs.
All improvements shall be completed in accordance with all
applicable laws, ordinances, rules or regulations.
• 30142506.3 010297 1034C 95176178 4
® The Owner further contemplates that construction of the
improvements will begin after the date of this Agreement, with
completion estimated in January of 1998.
VI. EVENT OF DEFAULT
During the abatement period covered by this Agreement, the
City may declare a default hereunder by the Owner if the Owner
fails to commence construction of the New Facility described in
Part V, above, and the Application attached hereto as Exhibit "A"
within two (2) years from the date of this Agreement, fails to
construct the New Facility described in Part V, above, or refuses
or neglects to comply with any of the terms of this Agreement, or
if any representation made by the Owner in this Agreement is false
or misleading in any material respect.
Should the City determine the Owner to be in default of this
Agreement, the City shall notify the Owner in writing prior to the
end of the abatement period, and if such default is not cured
within sixty (60) days from the date of such notice ( "Cure
Period ") , then this Agreement may be terminated; provided, however,
that in the case of a default that for causes beyond Owner's
reasonable control cannot with due diligence be cured within such
sixty -day period, the Cure Period may, at the sole discretion of
the City after considering the factors enumerated in this Article,
be extended if Owner (i) shall immediately, upon the receipt of
such notice, advise the City of Owner's intention to institute all
steps necessary to cure such default and (ii) shall institute and
thereafter prosecute to completion with reasonable dispatch all
steps necessary to cure same.
In the event the Owner allows its ad valorem taxes owed the
City to become delinquent and fails to timely and properly follow
the legal procedures for their protest and /or contest, or if the
Owner violates any of the terms and conditions of this Agreement
and fails to cure during the Cure Period, this Agreement may then
be terminated and all taxes previously abated by virtue of this
Agreement will be recaptured and paid within sixty (60) days of the
termination. Recaptured taxes not paid within said period shall
accrue interest and penalties as set forth in the applicable
provisions of the Texas Tax Code.
In the event the facility herein is completed and begins
producing product or service, but subsequently discontinues
producing product or service for any reason excepting fire,
explosion or other casualty, accident or natural disaster, for a
period of one year during the abatement period, then this Agreement
shall terminate. In the event of termination pursuant to the
provisions of this paragraph, the abatement of the taxes and
payments for the calendar year during which the facility no longer
produces shall terminate, but there shall be no recapture of prior
(9 30142506.3 010297 1054C 95175178 5
years' taxes and payments abated by virtue of this Agreement. The
taxes and payments otherwise abated for the calendar year during
which the facility no longer produces shall be paid to the City
prior to the delinquency date for such year; provided, however,
that in no event shall Owner be required to pay such taxes and
payments within less than sixty (60) days of the termination.
VII. ADMINISTRATION
This Agreement shall be administered on behalf of the City by
the City Manager pursuant to the direction of the City Council of
the City of Baytown. The Owner shall allow employees and /or
representatives of the City who have been designated by the City
Manager to have access to this Reinvestment Zone during the term of
this Agreement to inspect the facility to determine compliance with
the terms and conditions of this Agreement. All inspections will
be made only after the giving of twenty -four (24) hours prior
notice and will only be conducted in such manner as to not
unreasonably interfere with the construction and /or operation of
the facility. All inspections will be made with one or more
representatives of the Owner and in accordance with Owner's safety
standards.
Upon completion of the contemplated construction, the City
Manager shall annually evaluate the facility to ensure compliance
with the terms and provisions of this Agreement and shall report
possible defaults to the City Council and the City Attorney.
The Chief Appraiser of the Harris County Appraisal District
shall annually determine (i) the taxable value pursuant to the
terms of this abatement of the real and personal property
comprising this Reinvestment Zone and (ii) the full taxable value
without abatement of the real and personal property comprising this
Reinvestment Zone. The Chief Appraiser shall record both the
abated taxable value_ and the full taxable value in the appraisal
records. The full taxable value figure listed in the appraisal
records shall be used to compute the amount of abated taxes that
are required to be recaptured and paid in the event this Agreement
is terminated in a manner that results in recapture. Each year the
Owner shall furnish the Chief Appraiser with such information
outlined in Chapter 22, TEX. TAX CODE, as may be necessary for the
administration of the abatement specified herein.
If the City terminates this Agreement, it shall provide Owner
written notice of such termination. If Owner believes that such
termination was improper, Owner may file suit in the Harris County
District Courts appealing such termination within sixty (60) days
after receipt from the City of written notice of the termination.
If an appeal suit is filed, owner shall remit to the City, within
sixty (60) days after receipt of the notice of termination, any
additional and /or recaptured taxes or payments as may be payable
• 30142506.3 010297 1054C 95176178 6
during the pendency of the litigation pursuant to the payment
provisions of TEX. TAX CODE § 42.08. If the final determination of
the appeal increases Owner's liability above the amount of tax
paid, Owner shall remit the additional tax and payments to the City
pursuant to TEX. TAX CODE § 42.42. If the final determination of
the appeal decreases Owner's liability, the City shall refund to
Owner the difference between the amount paid and the amount for
which Owner is liable pursuant to TEX. TAX CODE § 42.43.
VIII'. ASSIGNMENT
The Owner may assign this Agreement to a new owner or lessee
of the facility with the prior written consent of the City Council
of the City of Baytown, which consent shall not be unreasonably
withheld. Any assignment shall provide that the assignee shall
irrevocably and unconditionally assume all the duties and
obligations of the assignor upon the same terms and conditions as
set out in this Agreement. Any assignment of this Agreement shall
be to an entity that contemplates the same improvements to the
property, except to the extent such improvements have been
completed. No assignment shall be approved if the Owner or the
assignee are indebted to the City for ad valorem taxes or other
obligations.
IX. NOTICE
Any notice required to be given under the provisions of this
Agreement shall be in writing and shall be duly served when it
shall have been deposited, enclosed in a wrapper with the proper
postage prepaid thereon, and duly registered or certified, return
receipt requested, in a United States Post Office, addressed to the
City or Owner at the following addresses. If mailed, any notice or
communication shall be deemed to be received three days after the
date of deposit in the United States Mail. Unless otherwise
provided in this Agreement, all notices shall be delivered to the
following addresses:
To the Owner:
Mr. Cosimo Caracciolo
EniChem Elastomers Americas, Inc.
2000 West Loop South, Suite 2010
Houston, Texas 77027
with copy to:
Mr. Paul Clemenceau
Mayer, Brown & Platt
700 Louisiana, Suite 3600
Houston, Texas 77002
0 30142506.3 010297 1054C 95176178 7
To the City:
City of Baytown
P. 0. Box 424
Baytown, Texas 77522
Attention: City Manager
X. SEVERABILITY
If any provision of this Agreement shall be held invalid,
illegal or unenforceable, the validity, legality or enforceability
of the other provisions hereof shall not be affected thereby, and
there shall be deemed substituted for the provision at issue a
valid, legal and enforceable provision as similar as possible to
the provision at issue.
XI. DATE
This Agreement has been executed by the parties in multiple
originals, each having full force and effect.
ATTEST: OWNER: ENICHEM ELASTOMERS
AMERICAS, INC.
By:
Title.
ATTEST:
By:
EILEEN P. HALL, City Clerk
0 30142506.3 010297 1034C 93176178 8
Name:
Date:
CITY OF BAYTOWN
By:
PETE ALFARO, Mayor
EXHIBITS
Exhibit A Abatement Application
Exhibit B Guidelines and Criteria
Exhibit C Property Description of Reinvestment zone
40 30142506.3 010297 1349C 95174178 9
ENICHEM ELASTOMERS AMERICAS, INC.
® 2000 West Loop South, Suite 2010
Houston, Texas 77010
(713) 940 -0702
[Date]
City of Baytown
Attention: The Honorable Pete Alfaro, Mayor
2401 Market
P.O. Box 424
Baytown, Texas 77522 -0424
Re: EniChem Elastomers Americas, Inc. Tax Abatement
Gentlemen:
In accordance with Section 3(a) of the Guidelines and Criteria of
the City Council of the-City of Baytown - Resolution No. 1262, EniChem
Elastomers Americas, Inc. hereby requests the creation of a reinvestment
zone and tax abatement for its petrochemical manufacturing plant,
offices and laboratories to be constructed at 4801 Decker Drive in the
City of Baytown, Texas. The other eligible taxing jurisdictions are the
Goose Creek School District, Lee College and Harris County.
The new improvements to be undertaken consist of new petrochemical
plant including ingredients preparation, monomer and solvent
purification, production plant, product warehouse, maintenance,
laboratories, utilities production and distribution, access and
circulation roads, and offices. A descriptive list of improvements for
which abatement is requested and a list of the kind and number of all
such proposed improvements, together with a time schedule for
undertaking and completing the proposed improvements are contained in
Exhibit A attached hereto. A map and property description of the
reinvestment zone and the approximate location of the proposed
improvements is contained on Exhibit B attached hereto.
Very truly yours,
ENICHEM ELASTOMERS AMERICAS, INC.
By:
Name:
Title:
• 30142506.3 010297 1054C 95176178 EXH I H I T A
ni
EXHIBIT A
APPLICATION FOR TAX ABATEMENT IN BAYTOWN, TEXAS
The filing of this document acknowledges familiarity and conformance with Guidelines and
Criteria for Tax Abatement. This application will become part of the agreement and any
knowingly false representations will be grounds to void the agreement. Original copy of this
request should be submitted to City Manager, P.O. Box 424, Baytown, Texas 77522 -0424, if
property is located inside the corporate limits of Baytown.
APPLICANT INFORMATION
Company Name: EniChem Elastomers Americas, Inc.
Address: 2000 West Loop South
Houston, T% 77027
Corporation (g) Partnership ( ) Proprietorship ( )
PROJECT WFORINIATION
Tyne of Facility
DATE: 11/05/96
See instructions. Manufacturing Facility
O Wholesale Distribution Facility
O Research Facility
() Service Facility
()
Entertainment & Recreation Facility
( ) Other Basic Industry
Proposed Project Location Address and Legal Description:
School District Goose Creek School
College District Lee College
City or Town , Baytown
Attach map showing proposed site.
Describe Product or Service to be provided.
)�roiect Description:
Attach statement fully explaining project, describe existing site and improvements and provide
list of improvements and fixed machinery and equipment for which abatement is requested.
{ } New Plant () Expansion Modernization () Other
ECONOMIC INTORMATION
Construction Estimates:
Start Month /Year 6 / 97 Construction Man Years 25
Completion Date 1 / 98 Peak Construction Jobs 40
If Modernization:
Estimated Economic Life of Existing Plant 15 Years
Added Economic Life From Modernization 5 Years
Permanent Emiplovrnent Es imate (PTE' s):
Current Employment 8
Number of Jobs (x) Retained or ( ) Created
at start/opening 98 in year 1997
5 years into operation 98 in year 2002
Estimated Appraised Value on Site:
Personal
Property
Value January 1, preceding
abatement agreement
Estimated Value of Abated
Properties after abatement
expires
$1,784,000.00
Improvements Land
$48,290,000.00 $5432000.00
4,870,000.00 —
Value upon completion of project
is personal property and project
improvements not subject to
abatement $1,784.0 0.00 ;53 . i 60.000.00 $541-00 .00
® VARIANCE
Is the applicant seeking a variance under Section 4 (f) of the Guidelines? ( ) Yes (g) 'No
If "Yes" attach required supplementary information.
OTHER ABATEAI:ENTS
Has company made application for abatement of this project by anothtr taxing jurisdiction or
nearby counties? (X) Yes () No. If "Yes" provide dates of application, hearing dates if held
or scheduled, name of jurisdictions and contacts, and letters of intent. HARRIS COUNTY
COMPANY REPRESENTATIVE
Name: Cosimo Caracciolo
Title: V.P. Finance
TO BE CONTACTED:
Signature of Company Official
Cosimo Caracciolo, V.P. Finance
Name & Title of Company Official
Address: 2000 West Loop South. Houston, TR
Telephone: 713/940 -0704
El-
STATEMENT OF DEPOSITS & FILINGS
FOURTH QUARTER 1995
ENICHEM ELASTOMERS AMERICA INC
I C LUMPKIN
000 W LOOP S #2010
OUSTON TX 77027
LEGAL NAME: ENICHEM ELASTOMERS AMERICAS INC
STATE OF TEXAS
QUARTER WAGE RECAP:
SUI SUBJECT WAGES 1,493,209.82
EXCESS SUI WAGES 1,468,252.47
SUI TAXABLE WAGES 24,957.35
COUNTY CODE: 201
ADP FILING RESPONSIBILITY: SUI QUARTERLY
CLIENT FILING RESPONSIBILITY: NONE
J� TAX FILING SERVICE
STATEMENT DATE 01/20/96
BR /COMPANY 13 /DJE
AGENT 005
COMBO NO
SUI -ID: 01- 849323 3
EMPLOYEES: TOT MALE FEM NEW
MONTH 1 113 79 34 HIRE
MONTH 2 112 78 34
MONTH 3 110 78 32 2
WAGE OTL 113
SUI ER RATE 1.5300%
SUI LIMIT 9,000
1 >1.
DEPOSIT DETAIL
QBU BATCH NBR 95/4/353
DEPOSIT
EMPLOYER
DATE
SUI
TOTAL
01 -29 -96
381.85
381.85
TOTAL
DEPOSITS
381.85
381.85
TOTAL
LIABILITY
381.65
381.85
*ADJUSTMENT
.00
•00
DIFFERENCE
.00
•00
C]
We have filed this information with the appropriate agency.
PO— o n -uo THIS STATEMENT SHOULD BE RETAINED AS PART OF YOUR TAX RECORDS.
-
w
a t D O •. r z 1
O
N
S N m
-4 -i D m m
z n m
-4
O S z_
-1 w O G O O • m D
�
a
31-19
CA p n
• N N N N • M N
'C
m
-i S
m
o -4 1 -i s R+
m m
o �"
3
g
z
ro
r,
• n n n c • v m m
y m
n
r
rri )w
n
:O
V
3 + ME ME Ic Z •
m
N
m'
O
1 N �
77
m m m m m z N
i
x 00
N
D
< . N N N N ♦ m __4
m
C x
r
m M N A
L
-1 � m
Q
N
m • x x x x + O m
c0
J S A
C
�o z v
n • m N m N • -1 O O
w
N
O - N
N
D
Q
o x --I x -4
n+
w
y N D
7�
C + O ro v + n -4
3
4
-1 3
-1
z m m O b m
-n z m ♦ z m O
z-
D
W
m m
m
=
N • .� -Ci m 1 • A O
m-C
on
�!f
A a A A O m
m
a
• -� • r -+ O
m m rn (0
vi
_
y
D
• D > w O
z
D
C)
1 -i
n
-�
m
s m m ♦
m
m
ro
• o o
p
x
_ _
t N O
-•�
• A d N N i Q1
Mao �
61
Q
• A d m m ♦ SJ1
m N I
N m
�
4 _j Cn to O
�4 N m 0
lO`'_- t------
n
0
--
- - - - - - - - - - - - - - - - - - - - - - - - - � -- p- - - -� -g
0
..
.1 2 .• x
\
1-n Vf
x x x x +
z b a
m
- - - --CL _T" - - - - - - - - - - - - -
-
ro
- - -
- - - - - - - - - - - - - ♦ -
p :
r
D
O
• •
Nii
►~. N j �n
=IE
O
i
O z + N to N M +
. DDO
-4
m Q
z O -4 c0
O w O a O a • N -4 O
v m O �_Q_ -4 co %j
- - - - - - - - - -
N 0 __4 __4
mma
O N r
a
m
D
- - -
- - - - - - - - - - - - - - - - -rrr - - - -a- - s - - { Zp- Ln
n
-4 C
m
x
n
2
• . i
n w
a
m
p ♦ +
s �
__
m
- - -
----------- .----- -� - -=4 -- - - - - - - - - - - - - - r - - - - - - -
Q
-
m
•
N In
a
m
n • 0 •
1- O;
m -
.�C a
+
O ♦ N mi
3
m
a QN) ID Ul
L- v- Z----
M
•1 N
---
- - - -- - - - - - - - - - - - - - - - - - - - - -- �_- - - - -�-
KA to O
-r
~ i.
Ln
x C C C C
t
• n n n n • m
a a i
m n
-n
z O
r. • n n n n •
m m i
at
r o O O O
i COQ -
N o
n
n
m0
--
-�D -
- - - -- - - - - - - - - - - - Y-- -----L--- �--?- ?-- - - ----
3 Q7
m
� 3E
• m m m m ♦
O O m 0
m
C C C C m
N r_ t
r
s -1 -1 • N
r w1- .+ ►+
-4 \ _f -i
0 1 D 1
A
N
- - -
- - - - - - - - - - - - - - - - - - - - - - - - -r - -a- c1- 15 - b -- „- - - - - - - - $ -
R v
-4
0
OT
+ •
O a q a
m
♦ •
A n
m N m' N
N %
- - -
- - - - - - - - - - - - - - - - - - - - - - - - - l -- ” --m -- --n -- - - - - - - - - - - -
rrnnC"
A
rrf -ti m
• z a z a
n n N
023* N
a
t m TJ m A
x__(
to
D D m
N a a
• 70 -i M -4 • to
P_ J*L D_ t^_
w m -.(
O r
ro
►• O
• - -
- - - - - - - - - - - - - - - - - - - - - - - - - � - - - - 1 - � - - - - - - - �
.i r-
n
t0
♦ + N
N
3
♦ . N
m 0
ao�
OM
- - -
- - - - - - - - - - - - - - - - - - - - - - - - - t - - - - - - - - - - - - - *L - - - - - - - --
wDv
z
!
• ♦ m
m
D
O
• •
O O
_
O
w A •
m
m
3
zzm
• •
CT3
to to '
+ a a •
m0 r,
O O
aim
_
• ♦
O
o n'
z
C7
0)
U
9:11
EniChem Elastomers Americas, Inc,,
APPLICATION FOR TAX ABATEMENT
HARRIS COUNTY
IM PACT STATEMENT
November 1996
Finishing Area - Cost $4,870,000
I. INTRODUCTION
EniChem Elastomers Americas, Inc. is a wholly -owned subsidiary of
Enichem S.p.a., a company of E.N.I. S.p.a. (the eighth (8th) largest
petrochemical company in the world). E.N.I. is based in Rome, Italy
and maintains subsidiaries and facilities around the world (see
attached materials).
Enichem Elastomers Americas, Inc. was incorporated in Delaware on
February 3, 1988.
Enichem Elastomers Americas, Inc. completed construction of its
first U.S. manufacturing plant in Baytown, Texas in the summer of
1992. In 1991 the Company moved its sales staff and laboratory from
New York to Houston and Baytown. In 1994 Enichem America, Inc. ,
a sister company of Enichem Elastomers Americas, Inc., moved its
Headquarters from New York to Houston. Both Companies are
located at 2000 West Loop South in the Galleria of Houston, Texas.
Both Companies employ about 158 people in Baytown and Houston
facilities.
II REASON FOR ABATEMENT
In order to retain the 98 jobs located at the Baytown plant, it is vital
to remain competitive. Toward this end, the Company is considering
whether or not to modernize and upgrade its finishing area here or a
•
D.
r
LPJI
EniChem EEastomers Americas, Inc.
sister plant in Ravenna, Italy. The availability of tax abatement will
be a factor in making the investment in Baytown.
M. PROJECT DESCRIPTION
A. Project Title: Finishing Area Completion
Location: 4803 Decker Drive; Baytown, Texas 77520
Ownership: Enichem Elastomers Americas, Inc.
Cost: $4,870,000.00
B. Project Type Capital Investment
D. Project Environmental Impact
None
Company Environmental Compliance History:
+^! fM^ LM:?+ ti? L? r�'?•>' �+YIM: ? ?1LM•:S1N!!!�NAit ?t;: ?:: Yh:jitjLNtgg f'•'t111Kttjj Clt • YSKLjK\ 1SKSt{ A!^C•'^ tK^ f! C:< r< CK;:< L�C f[ S! �^" r�L<[ CM:
it!({ KCKKtt�• KpK4f SY(' �! � !KNN<ft!M.ttty'tiKKttSM!^Yt.�rib
Air Quality Permit
20311 TNRCC
None
Solid Waste Registration
3457 TNRCC
None
Hazardous Waste Activity
XC988067070 EPA
None
Stormwater NPDES
TXRO00535 EPA
None
Industrial Wastewater
IU -044 City of
Violations received for:
Discharge
Baytown
(1) Foam and solids in
discharge (Last occurred
December, 1994), (2)
Non - sampling incidents.
(January, 1996)
IV JOBS
A. The Manufacturing plant in Baytown currently employs 98
people in both force account and contract labor. (TEC filing
attached).
B. The importance of this project is that by modernizing the plant,
the 98 current jobs will be retained.
•
IE
J
EniChem Elas#omers Americas, Inc
C. Peak construction will result in 40 jobs with a total construction
impact of the equivalent of 25 man years of employment.
D. The current payroll at the Baytown plant only is about
$4,654,000.40 per year.
V. LOCAL COMPETITION.
A. No Iocal companies compete with Enichem Elastomers Baytown
Plant.
B. The abatement does not impact other Harris County
manufacturers because none produce the same product as
Enichem does.
VI. ATTRACTION
This project has the potential of attracting new business in two ways:
First, modernizing the existing manufacturing process maintains the
investment and significance of the Baytown plant to the Headquarters
Group in Milan, Italy. Efficient and profitable operation of this plant
will undoubtedly lead to future investment and possible new product
lines.
The new business will be in the form of in -house expansion and
increased employment from a Company (Enichem) that is already in
and committed to Harris County and Baytown.
Second, employment at Enichem represents basic industrial
employment. Expansion of this employment base always positively
impacts service sector employment. Therefore this project may attract
new business or increase employment not only through directly
related activities but also through service 'suppliers, retail and
commercial outlets.
VII. ALTERNATIVE SITES.
The Headquarters Group of Enichem is considering whether or not to
invest in the modernization of the Baytown plant or the sister plant in
E
U
C
u
EnWhem Elastomers Americas, Inc.
Italy. Approval of tax abatement for the Baytown project will serve to
offset the intrinsic interest and cost of operating in Italy, therefore:
making this project more feasible.
VIII. The Company owns its land and has since 1991.
IX. PROJECT DESCRIPTION.
Scope of work: Construction of a new line for cooling, drying ,
and packaging of Block Copolymers based on
Styrene, Isoprene, Butadiene.
Major Works List Construction of a new portion of building for
55500 Sq. Ft. of total covered surface.
Construction of relevant steel structures for
equipment steel support. Upgrading the hardware
and the software of the existing control system
(DCS). Upgrading of the existing exhaust system.
Equipment List. 2 Spiral Vibrating Elevators
21Vlills
1 Cold Box
4 Vibrating Conveyors
3 Belt Conveyors
5 Blowers
1 Pneumatic transport
1 Packaging Silo
1 Packaging Station
Construction starting date:
Construction Finishing date:
June 1997
January 1998
EniChem Eiastomers Americas, Inc.
OFFICERS:
Mr.'Luclano Topi
Mr. Cosimo Caracciolo
Mr. Rosario Composto
U
Chairman & C.E.O.
Vice President Finance & Administration
Vice President Logistics & Purchasing
RESOLUTION NO. 1262 EXHIBIT B
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN,
TEXAS, REVIEWING THE FORMER GUIDELINES AND CRITERIA FOR
GRANTING TAX ABATEMENT IN A REINVESTMENT ZONE CREATED IN
HARRIS COUNTY OR CHAMBERS COUNTY; ADOPTING SUCH
GUIDELINES AND CRITERIA; AND PROVIDING FOR THE EFFECTIVE
DATE THEREOF.
WHEREAS, the creation and retention of job opportunities that
bring new wealth is a high civil priority of the City of Baytown;
and
WHEREAS, new jobs and investment will benefit the area
economy, provide needed opportunities, strengthen the real estate
market and generate tax revenue to support local services; and
WHEREAS, the communities within Harris and Chambers Counties
must compete with other localities across the nation currently
offering tax inducements to attract new plans and modernization
projects; and
WHEREAS, any tax incentives offered in the City of Baytown and
Harris and Chambers Counties reduce needed tax revenue unless
strictly limited in application to those new and existing
industries that bring new wealth to the community; and
WHEREAS, any tax incentives should not adversely affect the
competitive position of existing companies operating in the City of
Baytown and Harris and Chambers Counties; and
WHEREAS, the abatement of property taxes, when offered to
attract primary jobs in industries which bring in money from
outside a community instead of merely recirculating dollars within
a community, has been shown to be an effective method of enhancing
and diversifying an area's economy; and
WHEREAS, effective September 1, 1987, Texas law requires any
eligible taxing jurisdiction to establish Guidelines and Criteria
as to eligibility for tax abatement agreements prior to granting of
any future tax abatement, said Guidelines and Criteria to be
unchanged for a two year period unless amended by a three - quarters
vote; and
WHEREAS, to assure a common, coordinated effort to promote our
communities' economic development, any such Guidelines and Criteria
should be adopted only through the cooperation of affected school
districts, cities and counties; and
WHEREAS, City Council has determined that the Guidelines and
Criteria as to eligibility. for tax abatement agreements should be
changed to conform with the criteria adopted by overlapping taring
jurisdictions; and
•
WHEREAS, the attached guidelines,-adopted by City Council in
December 1989 and amended in July 1990, and July 1992, have been
reviewed by City Council, and they have determined that progress
towards the goals therein stated has been made; NOW THEREFORE
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN,
TEXAS:
Section 1: That the City of Baytown has reviewed the
Guidelines and Criteria for granting tax abatement in a
reinvestment zone and determined that the goals stated therein are
still appropriate, and are being met.
Section 2: That the City of Baytown hereby adopts the
Guidelines and Criteria for granting tax abatement in a
reinvestment zone which are attached hereto as Exhibit "A."
Section 3: This resolution shall take effect immediately from
and after its passage by the City Council of the City of Baytown.
INTRODUCED, READ and PASSED by the affirmative vote of the
City Council of the City of Baytown this 28th day of September,
1995.
�-�- C Ze/,"
PETE C. AL ARO, Mayor
ATTEST:
EILEEN P. HALL, City Clerk
APPROVED AS TO FORM:
A , , City Attorney
IcCa Ua, u116111cptcmhcd9 .28.95ro ADO nguiJclnres
• 2
TAB' ABATEMENT GUIDELINES
SUMMARY
® OBJECTIVES •
•
Primary job creation -- ,target industries.
Amount of abatement -- minimum to be competitive.
Fair to taxing jurisdictions -- It is a local option.
Fair to existing business -- modernization, expansion.
Regional cooperation -- similar abatements.
Flexibility -- toughly enforced variance procedure.
TERMS • 100% during construction, not to exceed two (2) years.
• 100% 1 st year after construction.
• 75% 2nd year after construction.
50% 3rd year after construction.
FACILITIES
•
Manufacturing.
THAT QUALIFY
•
Regional service & distribution.
•
Regional entertainment.
•
Research and development.
•
Other basic industry.
AUTHORIZED
•
New plant.
INVESTMENTS
•
Expansion.
•
Modernization.
ABATED
•
Buildings and structure.
•
Fixed machinery and equipment.
•
Size improvements.
•
Office space to administer plant.
NOT ABATED
•
Land.
•
Existing improvements.
•
Construction -in- progress.
•
Personal property.
•
Hotels.
•
Housing.
•
Pipelines.
•
Gas and fluid storage.
•
Electrical generating facilities.
•
Deferred maintenance.
•
Property Nvith useful lift less than fifteen (15) years.
ECONOMIC
•
Minimum one million dollar ($1,000,000) invcstmcnl.
CRITERIA
0
Retain or create m Ieast fifteen (15) jobs.
•
Cannot reasonably use existing property.
iNo
"serious adverse affect" on jurisdictions.
EXHIBIT A
SECTION 1
DEFINITIONS
® (a) "Abatement" means the full or partial exemption from ad valorem taxes of certain real
property in a reinvestment zone designated for economic development purposes.
(b) "Eligible Jurisdiction" means any county, municipality, school district or college district that
levies ad valorem taxes upon and provides services to property located within the proposed
or existing reinvestment zone.
(c) "Agreement" means a contractual agreement between a property owner and /or lessee and an
eligible jurisdiction for the purposes of tax abatement.
(d) "Base Year Value" means the assessed value of eligible property January 1 preceding the
execution of the agreement plus the agreed upon valued of eligible property improvements
made after January 1 but before the execution of the agreement
(e) "Economic Life" means the number of years a property improvement is expected to be in
service in a facility.
(f) "Deferred Maintenance" means improvement necessary for continued operations which do
not improve productivity or alter the process technology. .
(g) "Expansion" means the addition of buildings, structures, fixed machinery or equipment For
Purposes of increasing production capacity.
(h) "facility" means property improvements completed or in the process of construction which
together comprise an integral whole.
(1) "Manufacturing facility" means buildings and structures, including fixed machinery and
equipment, the primary purpose of which is or will be the manufacture of tangible goods or
materials or the processing of such goods or materials by physical or chemical change.
tj) "Modernization" means the replacement and upgrading of existing facilities which increases
the productive input or output, updates the technology or substantially lowers the unit cost
of the operation. Modemization may result from the construction, alteration or installation
of buildings, structures, fixed machinery or equipment. It shall not be for the purpose of
reconditioning, refurbishing or repairing.
(k) "New facility" means a property previously u►ideveloped wlliclt is placed into scrvice by
means othcr than or in conjunction with expansion or modernization.
0 ri lin art t .ri rii (r irty -'►nt n 7 n <, Pa;c 1
(I) "Other Basic Industry" means buildings and structures including fixed machinery and
equipment not elsewhere described, used or to be used for the production of products or
services which primarily serve a market outside the Houston Consolidated Metropolitan
Statistical Area and result in the creation of new permanent jobs and bring new wealth in.
(m) "Regional Distribution Center Facility" means buildings and structures, including fixed
machinery and equipment, used or to be used primarily to receive, store, service or distribute
goods or material owned by the facility operator where a majority of (lie goods or services
are distributed to other points.
(n) "Regional Entertainment Facility" means buildings and structures, including fixed machinery
and equipment, used or to be used to provide entertainment through the admission of the
general public.
(o) "Regional Service Facility" means buildings and structures, including fixed machinery and
equipment, used or to be used to service goods where a majority of the goods being serviced
originate at least one hundred (100) miles away.
(p) "Research Facility" means buildings and structures, including fixed machinery and
equipment, used or to be used primarily for research or experimentation to improve or
develop new tangible goods or materials or to improve or develop the production processes
thereto.
SECTION 2
A13ATEMENT AUTHORIZED
(a) Authorized Facility. A facility may be eligible for abatement if it is a Manufacturing
Facility, Research Facility, Regional Distribution Center Facility, Regional Service Facility,
Regional Entertainment Facility or Other Basic Industry.
(b) Creation of New Value. Abatement may only be granted for the additional value of
eligible property improvements made subsequent to and listed in an abatement agreement
between the City of Baytown and the property owner and lessee (if required), subject to such
Iimitations as City Council may require.
(c) New and Existing Facilities. Abatement may 'bc granted for new facilities and
improvements to existing facilities for purposes of modernization or expansion.
(d) Eligible Property. Abatement may be extended to the value of buildings, structures, lixcd
machinery and equipment, site improvements plus that office space and related fixed
improvements necessary to the operation and administration of the facility. '
0 , iltictCl inc S and Crilerin for RZ invc�lnt •nt 7 Iles, ftgc 2
(e) Ineligible Property. The following types of property shall be fully taxable and ineligible for
abatement: land; inventories; supplies; tools; furnishings; and other forms of movable
personal property; vehicles; vessels; aircraft; housing; hotel accommodations; deferred
maintenance investments; property to be rented or leased except as provided in Section 2 (f)•
improvements for the generation or transmission of electrical energy not wholly consumed
by a new facility or expansion; any improvements, including those to produce, store or
distribute natural gas, fluids or gases, which are not integral to the operation of the facility;
property which has an economic life of less than fifteen (15) years; and property owned or
used by the State of Texas or its political subdivision or by any organization owned, operated
or directed by a political subdivision of the State of Texas.
(f) Owned /Leased Facilities. If a leased facility is granted abatement the agreement shall be
executed with the lessor and the lessee.
(g) Value and Term of Abatement. Abatement shall be granted effective with the January 1
valuation date immediately following the date of execution of the agreement. One hundred
percent (100 %) of the value of new eligible properties shall be abated for up to two (2) years
during the period of construction, followed by one hundred percent (100 %) abatement for
the first year after construction, seventy -five percent (75 %) abatement for the second year
after construction and fifty percent (50 %) abatement for the third year after construction. If
the period of construction exceeds two (2) years the facility shall be considered completed
for purposes of abatement and in no case shall the period of abatement inclusive of
construction and completion exceed five (5) years.
If modemization project includes facility replacement, the abated value shall be the value
of the new unit(s) less the value of the old unit(s)
(h) Economic Qualification. In order to be eligible for designation as a reinvestment zone and
receive tax abatement the planned improvement:
(1) must be reasonably expected to increase the appraised value of the properly in the
amount of one million dollars (S 1,000,000) after the period of abatement has expired;
(2) must be expected to prevent the loss of employment,7etain or create employment for
at least fifteen (15) people on a permanent basis;
(3) must not be expected to solely or primarily have the effect of transferring
employment from one part of a county to another; and
(4) must be necessary because capacity cannot be provided efficiently utilizing existing
improved property when reasonable allowance is made for necessary improvements.
(a clllidclincs vi I Criicrin ror R my men _7L n. Vag 3
(1) Taxability. From the execution of the abatement to the end of the agreement period, taxes
shall be payable as follows:
(1) The value of ineligible property as provided in Section 2(e) shall be fully taxable.
(2) The base year value of existing eligible property as determined each year shall be
fully taxable.
(3) The additional value of new eligible, property shall be taxable in the manner
described in Section 2(g),
SECTION 3
APPLICATION
(a) Any present or potential owner of taxable property in the City of Baytown may request the
creation of a reinvestment zone or tax abatement by filing a written request with the City of
Baytown.
(b) The application shall consist of a completed application form accompanied by a general
description of the new improvements to be undertaken; a descriptive list of the improvements
for which an abatement is requested, a list of the kind, number and location of all proposed
improvements of the property; a map and property description; and a time schedule for
undertaking and completing the proposed improvements. In the case of modernization, a
statement of real and personal property shall be given for the tax year immediately
proceeding the application. The application form may require such financial and other
information as the City Council deems appropriate for evaluating the financial capacity and
other factors of the applicant.
(c) Upon receipt of a completed application, the Mayor of the City of Baytown or his designee
shall notify in writing the presiding officer of the governing body of each eligible
Jurisdiction.
(d) After receipt of an application for creation of a reinvestment zone and application for tax
abatement, the City Council through its designated officer or employee shall prepare a
feasibility study setting out the impact of the proposed reinvestment zone and tax abatement.
The feasibility study shall include, but not be limited to, an estimate of the economic effect
of the creation of the zone and the abatcmcnt of laxes and the benefit to the eligible
jurisdiction and the property to be included in the zone.
(c) The City Council shall not establish a reinvestment zone or enter into an abatcmcnt
agreement if it finds that the request of the abatement was filed aficr the comillcnccmcnt of
0 Guidchnesnnfl Criterin (r Reinvctirn rr rt 11 (',11;e d
construction, alternation, or' installation of improvements related to a proposed
modernization, expansion or new facility:
® (f) Variance. Requests for variance from the provisions of Subsections (a), (e) and (g) of
Section 2 may be made in written form to a designate member of City Council, provided,
however, the total duration of an abatement shall in no instance exceed five (5) years. Such
request shall include a complete description of the circumstances explaining why the
applicant should be granted a variance. Approval of a request for variance requires a three -
fourths (%) vote of the City Council.
SECTION 4
PUBLIC HEARING AND APPROVAL
(a) The governing body of a city may not adopt an ordinance, or a county a resolution
designating a reinvestment zone until it has held a public hearing at which interested persons
are entitled to speak and present evidence for or against the designation. Not later than the
seventh (7th) day before the date of the hearing, notice of the hearing must be published in
a newspaper having general circulation in the municipality; and delivered in writing to the
presiding officer of the goveming body of each taxing unit that includes in its boundaries real
property that is to be included in the proposed reinvestment zone.
(b) Prior to entering into a tax abatement agreement, the City Council may, at its own option,
hold a public hearing at which interested persons shall be entitled to speak and present
written materials for or against the approval of the tax abatement agrecmcnt.
(c) In order to enter into a tax abatement agreement, the City Council must find that the terms
of the proposed agreement meet these Guidelines and Criteria and that:
(1) there will be no substantial adverse affect on the provision of the jurisdiction's
service or tax base; and
(2) the planned use of the property will not constitute a hazard to public safety, health
or morals.
(d) Any applicant requesting a variance under Section 3(0 shall be approved by a vote of at least
three - fourths (' /) of the City Council. No application which deviates from the requirements
of these Guidelines and Criteria shall be approved unless accompanied by a rcqucst for
variance as provided under Section 3(0.
(9 Guidchncs 'in i C.riicria r r R invct m n 7 n c, 11a0-c 5
SECTION 5
AGREEMENT
®
After approval the City Council shall formally pass a resolution or all ordinance and execute
an agreement with the Owner of the facility and lessee as required which shall include:
(1) the estimated value to be abated and the base year value;
(2) the percent of value to be abated each year as provided in Section 2(g);
(3) the commencement date and the termination date of abatement;
(4) the proposed use of the facility, nature of construction, time schedule, map property
description and improvement list as provided in Application Section 3(b);
(5) the contractual obligations in the event of default, violation of terms or conditions,
delinquent taxes, recapture, administration and assignment as provided in Section
2(a), 2(0, 2(g), 6, 7 and 8, or other provisions that may be required for uniformity or
compliance with state law, and;
(6) the amount of investment and the average number of jobs involved.
Such agreement shall normally be executed within sixty (60) days after the applicant has forwarded
all necessary information and documentation of the City Council. However, at least seven (7) days
before the agreement will be executed by the parties, the City Council or a designated officer or
employee of the City of Baytown shall deliver to the presiding officer of the governing body of each
other taxing unit in which the property to be subject to the agreement is located a written notice that
the City of Baytown intends to enter into the agreement. The notice shall include a copy of the
proposed agreement.
SECTION 6
RECAPTURE
(a) In the event that the facility is completed and begins producing product or service, but
Subsequently discontinues producing product or service for any reason excepting fire,
explosion or other casualty or accident or natural disaster for a period of one year during the
abatement period, the agreement shall terminate and so shall the abatement of the taxes for
the calendar year during which the facility no longer produces. The taxes otherwise abated
for that calendar year shall be paid to the City of Baytown within sixty (60) days front the
date of termination.
(b) Should the City Council determine that the company or individual is in default according to
the tcrnns and conditions of its agreement, the City Council shall notify the company or
individual in writing at the address stated in the agreement, and if such is not cured within
sixty (60) days from the date of such notice ( "Cure fcriod "), then the agreement inay be
terminated.
•
Quidelines and Criierin ror Rcinvc,uimcnl 7.onct, I'agc 6
(c) In the event that the company or individual (l) allows its ad valorem taxes owed the City of
Baytown to become delinquent and. fails to timely and properly follow the legal procedures
® for their protest and/or contest; or (2) violates any of the terms and conditions of the
abatement agreement and fails to cure during the Cure Period, the agreement then may be
terminated and all taxes previously abated by virtue of the agreement will be recaptured and
paid within sixty (60) days of the termination.
•
SECTION 7
ADMINISTRATION
(a) The Chief Appraiser of the County shall annually determine an assessment of the real and
personal property comprising the reinvestment zone. Each year, the company or individual
receiving the abatement shall famish the assessor with such infomiation as may be necessary
for the abatement. Once value has been established, the Chief Appraiser shall notify the
affected jurisdictions which levies taxes on the amount of the assessment.
(b) The agreement shall stipulate that employees and /or designated representatives of the City
of Baytown will have access to the reinvestment zone during the term of the abatement to
inspect the facility to determine if the terms and conditions of the agreement are being met.
All inspections will be made only after the giving of twenty -four (24) hours prior notice and
will only be conducted in such manner as to not unreasonably interfere with the construction
and /or operation of the facility. All inspections will be made with one or more
representatives of the company or individual and in accordance with its safety standard.
(c) Upon completion of construction, the jurisdiction which created the zone shall annually
evaluate each facility receiving abatement to ensure compliance with the agreement and
report possible violations of the contract and agreement to the City Council and its attorney.
SECTION 8
ASSIGNMENT
Tax abatement agreements may be assigned to a new owner or lessee of facility with the
written consent of the City Council which consent shall not be unreasonably withheld . Any
assignment shall provide that the assignee shall irrevocably and unconditionally assume all the duties
and obligations of the assignor upon the same tcm)s and conditions as set out in the agreement. Any
assignment of a tax abatement agreement shall be to an entity that contelliplatcd the same
improvements or repairs to the property, except to the extent such improvements or repairs have
been completed. No assignment shall be approved if the assignor or the assignee are indebted to the
City of Baytown for ad valorem taxes or other obligations.
Ok-ILkommdcvlguidclincs
C1uiddincc and C.rilcril ror Rcinvcsi mcnt %nnsc. I'isc 7
TRACT 1 ERHIBIT C
?RTES AND do
A 24.911 ACRE (11,085DESCRIPTION
952 SQUARE FEET)
TRACT OUT OF TEM ELA.RM WRITING SUMy,
AWTRACT NO. 840 HARRIS COUN'T'Y, 7EXkZ
Being a tract or parcel containing 24.921 acres (1,085,552
Abstract No. Ba 84 v ra foot) land out o! the Harvey Whiting surey,
Abstract Harris County, Texas, being also out of
those certain 99.782 acre tract, 31.394 acre tract and 1.52
acre tract in daads to the Texaa Olefin8 Company of record in
Film Code Numbers 105 -03 -0493, 121 -02 -1001 and 137 -16 -1554 of
the Dead Records of Harris County, Texas, end being more
particularly described by metes and bounds as follows;
COKMENCINo at the 8outhvost corner of the said 99.782 acre
1 tract, from Which a B" wood post in concrete vas found 0.38
feet North of said corner, and being in the northerly right-
of-way line of Baker Road (80.00' vide);
THENCE with the southerly line of said 99.782 acre tract and
the northerly right -of -way line of said Baker Road, East for
a distance of 1335.89 feet to a 1/2 -inch iron rod set for the
POINT OF BEGINNING and being in the easterly right-of-way
line of a San Jacinto River Authority Canal Right -Or -way
(210' vide) of record in Volune 1163, Page 576 of the Dead
Records of Harris County, Texas and being the southwest
corner herain;
THENCE with said easterly right -of -ray line of the San
Jacinto River Authority Canal right- cf -vay and the westerly
line herein, North 00 deg. 20 sin. 49 sec, weal for a
370.24 distance .o! 371.]3 fast (Deed North 00 Qeq. 39 min. hest,
3714 feat) t0 a 1/3 -inch iron rod round for corner, the
beginning or a curve to the left:
THENCE with said easterly right -of -tray line and the westerly
line.herein along said curve to the left having a central
angle of 36 -deg. 21 min., a radius of 395.62 feet a chord
bearing of North 18 deg. 31 min, 19 sac. Kest, a chord
distance of 145.80 foot for an arc distance of 250.99 feet to
a 1/2 -.inch iron rod sat for corner, the and of said curve
I
Page
TXOL p
THENCE, continuing vith eaid easterl ri ht -ot-
thg westerly lino herein, North 36 doe. 13 min. waya�ineand
(Dead - North 37 dog. oo min, west West
feet to a 1/2 -inch iron i for a distance of 1219.30
herein; rod set for the northwest corner
THENCE leaving said easterly right -of -way line v
northerly lino herein, south 89 dog. 47 as the
a distance o! 928.55 fast pass the •again• 32 sac. East, at
acre tract and the westerly line Or said 2ling of said 99' a
a dietenCe of 1368.59 acra tract, at
2.52 acre tract and fast pasa the eattsrl
tract the westerly lira of said 1310394 acre
and continuing for a total distance o
a 1/� -inch iron rod eat f 1490.29 feet to
being lso for the northeast corner herein,
being in than the easterly ling of said 31.394
(elate Highway westerly ,right -of -way line of acre tract and
S y No. 330), Recker Drive
THENCE with the eaatarly line of said 31.394 sore
westerly right -of -way line of said Decker Dcre tract, the
easterly line herein and the
(Deed - South 40 dog. ' South 39 deg. 29 min. Oo esc. East
02 min. East) for a distance of leE.S3
feet to a 1/2 -inch iron rod set for an
easterly line herein, being also the most lenstoint in the
the subject 24.921 acre tract, and from which a easterly point
on
of-
Od eat for � the most northerly
Falstaff Distributing Co en Corner of the 2.516 acre
dog. 29 t corner of saidp 3x.39 acacreastract bears South 39
deg' 29 min. 00 sec. East for a distance Of 78.41 lQetj
'I'nd leaving the eaatarly line of said 31.394 acre tract,
and continuing with the eaatarly line herein
43 min. l6 sac. Mast for a distance of 40a. South 28 deg.
inch iron rod set for corner: S9 feat. to a 1/2_
THENCE continuing With said
Min ens . 32 gee. Msst !or a distance oerly ling,
faet
North 89 deg. 47
iron rod sat for corner; a 1/2-inch
TNFNCE continuing With said eastarly ling o
min' 28 sec. East for a distanc8 or feet 00 deg. 12
agli g
iron rod set for corner; to a 1 /2-inch
LI
0
Page 3
TXOL P
THENCE continuing with said easterly line, North 89 dog, 47
min. 32 eec. West for a distance of 176.24 feet to a 1/2 -inch
iron rod set for corner;
THENCE continuing with said easterly line, south 00 dog. 11
min. 38 sec. Kest for a distance of 540.94 feet to a 1/2 -inch
iron-rod set for the southeast corner herein, being also in
the northerly right -of -way line of said Baker Roadl
THENCE with said northerly right -of -way line, and the
southerly line herein, nest at a distance of 39.33 feet pass
a 1/2 -inch iron rod set for tha southwest corner of said
31.394 acre tract and being the southeast corner of said
99.782 acre tract, and continuing for a total distance of
159.33 feet to the POINT OF BEGINNING and containing 14.921
acres (1,086,552 square feet) of land, more or less.
is
is March 26, 1991
Primary Sits A
r
w
■
It
alb 1. AprE�15A.:x D-
4572 t �~
SURv
r
w
■
It